Investment, resolution of risk, and the role of affect

This experimental study is concerned with the impact of the timing of the resolution of risk on investment behavior, with a special focus on the role of affect. In a between-subjects design, we observe the impact of a substantial delay of risk resolution (2 days) on investment choices. Besides the resolution timing all other factors, including the timing of payout, are held constant across treatments. In addition, state-of-the-art experimental techniques from experimental economics and psychology are used for eliciting preferences and to explicitly measure emotions and personality traits. Participants put their own money at stake. Our main finding is that the timing of the resolution of risk matters for investment, modulated by the probability of investment success. Emotions are found to play a significant role in this respect and explain our main finding. Our results support recent models of decision making under risk trying to incorporate anticipatory emotions but also uncover some important shortcomings related to the dynamics of emotions.     

Suddenly a stay-at-home dad? Short- and long-term consequences of fathers’ job loss on time investment in the household

Review of Economics of the Household - Commonly described as “gender care gap”, there is a persistent gender difference in the division of unpaid domestic responsibilities in developed...     

Does Future PC Use Determine Our Wages Today? — Evidence from German Panel Data

Abstract. Using 1985–99 data from the German Socio‐Economic Panel Study (GSOEP) we confirm the hypothesis that existing computer wage premiums are determined by ability or other unobserved individual characteristics rather than by productivity effects. In addition to the conventional longitudinal regression analysis, the two competing hypotheses were tested by employing future PC variables in the wage regressions in order to obtain a further control for worker heterogeneity. The finding that future PC variables have a statistically significant effect on current wages leads us to conclude that computer wage differentials can be attributed to worker heterogeneity rather than to computer‐induced productivity.     

Preschoolers’ responses to prosocial opportunities during naturalistic interactions with peers: A cross-cultural comparison

The goal of this study was to better understand similarities and differences in preschool children's expression of needs and prosocial responsiveness to peers’ needs across two culturally distinct contexts. Preschoolers were observed in a semi-naturalistic design across rural Mexico and urban Canada, wherein they were instructed to build a tower with blocks. Three- to 6-year-olds (N = 306; 48% female) were divided into 64 peer groups. We coded for children's expression of needs (instrumental, material, or emotional), responses to prosocial opportunities (prosociality, denial, or no response), prosociality without an apparent need (spontaneous prosociality), and types of prosocial behavior (helping, sharing, or comforting). While instrumental and material needs were expressed similarly across both samples, Tzotzil Maya children expressed fewer emotional needs than Canadian children. Failing to respond to others’ needs, followed by denial, were the most frequent need-provoked response in both countries; surprisingly, only 9% of needs received a prosocial response. Though need-provoked prosociality was rare in both cultural contexts, children engaged in considerable spontaneous prosociality which varied as a function of age, gender, and cultural context. Lastly, Canadian more than Tzotzil Maya children denied emotional and instrumental needs (but not material needs). The findings inform how cultural practices may shape the presentation of needs and prosocial responsiveness in peer interactions.